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Saab appoints North American administrator, prospects darken

Saab has appointed an administrator to oversee its North American business, Photo by Saab

Saab has appointed an outside administrator to oversee its business in North America and the potential wind-down or sale of the company if its parent operations can’t emerge from bankruptcy.

The move was announced on Wednesday afternoon by Saab North American COO Tim Holbeck as the company’s future remains uncertain. McTevia & Associates, a management and financial-consulting service with offices in suburban Detroit and Florida, is the administrator.

McTevia is charged with preserving the value of Saab’s North American business for creditors or any potential buyers and to not incur more debt.

“Right now we’ve basically stopped our business,” Holbeck said in a conference call with reporters.

Saab has suspended warranty coverage, though former owner General Motors said it will honor coverage on vehicles sold under its oversight. Holbeck said his company is “aggressively looking” at ways to reopen warranty coverage. There are about 2,400 vehicles left in Saab’s dealership inventory.

The administrator is Saab’s solution to independent oversight, rather than using the U.S. federal bankruptcy court. Creditors could still force Saab to file for bankruptcy.

Still, Saab’s prospects appear bleak, as Holbeck said there are “not very good odds” to avoid liquidation, though he noted that the brand has escaped death more than once. The company fell into bankruptcy earlier this week after a deal to sell it to Chinese investors fell through.

Saab’s sales have increased 22 percent this year to 5,340 vehicles in the U.S. market.

“It’s been remarkable to see the passion of our owners and dealers,” Holbeck said.